Betr Entertainment’s interim results call highlighted sustained turnover growth in the first half of the financial year, alongside near-term earnings pressure that management attributed to customer-friendly outcomes and a deliberate, front-loaded investment program. Chief Executive Officer Andrew Menz said those investments are now “largely complete,” positioning the company for improved efficiency and operating leverage in the second half.
Turnover growth outpaced the market
Menz said the company delivered first-half turnover of AUD 807.3 million, up more than 25% from the prior corresponding period. He added that underlying turnover growth excluding Top Sport was about 13%, which he described as roughly four times the company’s estimate of overall market turnover growth.
Earnings hit by results and front-loaded investment
Acting CFO Blake Matthews said the business recorded a Normalized EBITDA loss of AUD 13.2 million for the half. He attributed the result to roughly AUD 7 million of customer-favorable outcomes during the Spring Racing Carnival, as well as a front-weighting of marketing spend tied to marquee assets across the footy finals and the Ashes series.
Despite those conditions, Matthews said Net Wagering Revenue increased 8% to AUD 68.9 million on the back of the higher turnover. He also reported Net Win of AUD 75.8 million for the half.
On costs, Matthews said:
- Marketing expense increased 72%, reflecting the front-weighted investment and a comparatively low prior period due to migration of the BlueBet and Betr businesses.
- Employee benefits expense increased 28%, driven by the Top Sport integration and strengthening of product and technology teams.
- Other operating costs were “in line with expectations.”
Balance sheet and cash flows
Matthews said that at 31 December 2025, the company held corporate cash of AUD 26.7 million and reported net assets of AUD 137.4 million. He also noted that the company’s cash balance at the same date was AUD 40.8 million, including AUD 13.6 million of customer balances.
Cash flow commentary included:
- Net cash used in operating activities for the Australian business was AUD 18.5 million, including AUD 3.5 million of transaction costs, with underlying outflows reflecting marketing investment, higher promotional intensity, and customer-favorable results.
- Investing cash outflows totaled AUD 4.3 million, including AUD 4.1 million in platform development and AUD 0.2 million in plant and equipment.
- Financing cash outflows were AUD 41.3 million, primarily due to AUD 40.7 million deployed under the company’s share buyback.
Matthews said the company’s cash position was “in line with expectations,” and argued the first-half marketing spend set up momentum for the second half.
Guidance and bank facility extension
Management reiterated its outlook for a return to profitability, with Menz stating the company expects H2 FY 2026 normalized EBITDA of AUD 5 million to AUD 8 million. He also outlined an expectation for FY 2027 normalized EBITDA of AUD 13 million to AUD 19 million as operating leverage “compounds.” Menz emphasized the guidance is based on the existing Betr business, assumes modest industry turnover growth, and “doesn’t rely” on further step-change assumptions or M&A, though the company wants to preserve optionality for inorganic opportunities.
On funding, Menz said the company agreed with National Australia Bank to extend the maturity date of its existing facility by at least 12 months to 31 July 2027. Matthews added the terms are “largely unchanged,” including the facility limit. Matthews said the extension relates to the company’s AUD 35 million loan facility, secured against its strategic investment in PointsBet.
Trading update, marketing outlook, and product focus
During Q&A, management said margins had normalized after the first-half volatility. Menz said December and January margins were back in line with historical trends, while February was “slightly behind,” which he linked to Group 1 racing results. Over the last three months, he said margin tracking was in line with historical performance.
On marketing, Matthews said H2 marketing spend should be “materially lower” as the company looks to realize the benefits of its earlier investment.
On product, Menz said the shift from racing to sport is accelerating, especially among younger customers, and that Same Game Multi is becoming the product of choice for “nearly all sports customers.” He said the company has been investing to make its Same Game Multi offering “tier one,” with smaller releases planned to improve usability, and an “innovative” release expected by the end of the financial year that management believes will differentiate the brand.
In closing remarks, Menz said the call was shorter because the company had effectively pre-announced the half result in January, and he said management remained confident in execution toward its targets.
About BlueBet (ASX:BBT)
BlueBet Holdings Ltd provides sports and racing betting products and services to online and telephone clients through online wagering platform and mobile applications. BlueBet Holdings Ltd was founded in 2015 and is based in Sydney, Australia.
